JJB extends repayment deadline

EMBATTLED sportswear retailer JJB has secured more breathing space from its chief creditors on condition it pushes ahead with the sale of its fitness clubs.

The Wigan-based group was in talks with its banks well into the evening but succeeded in extending the deadline of its standstill agreement for another four-and-a-half weeks to March 16.

In a statement issued this morning it said the banks agreed to the plan, “subject to the lenders remaining satisfied with the progress of the company’s proposed disposal of its Fitness Clubs business.”
 
JJB is understood to have received the first round of bids for its gyms, put up for sale to help pay off a £60m loan to banks. Bids, including one from former JJB chairman Dave Whelan, are believed to be between £35m and £55m.

The company said it had agreed to pay its lenders, Barclays, Kaupthing and HBOS, a fee of £166,500 for the extension.

This will be offset against previously agreed fees. The balance of the fees, around £8m, is scheduled to be paid in March and April.